Visa Keeps Throwing Away Billions for Lawsuits

Its a good thing Visa Inc. (NYSE:V) raked in $6.2 billion in revenue last year as today they are setting aside another $700 million to cover lawsuits. Let's not forget Visa put $3 Billion in its litigation fund in March 2008, and another $1.1 billion in December.  But hey, what the hell, just charge it!

Visa Inc. shares aren't doing much today, standing still at $62 on today's news, here's a quick look at the high's and low's for Visa's share price:

The credit and debit card network has spent $2.1 billion in a settlement with American Express Co (AXP.N) over anti-competitive practices, and last year it agreed to pay $1.89 billion to Discover Financial Services (DFS) over several quarters in a similar settlement.

Visa said the new addition to its litigation account had the effect of a $700 million repurchase of the company's common shares. Under the terms of its initial public offering, Visa's U.S. bank shareholders agreed to have their stakes diluted to fund litigation in order to save other shareholders from direct losses from lawsuits in certain U.S. court cases.

Visa -- for shareholders, they are everywhere you want to be, except when it comes to massive lawsuits.